[B][SIZE=3][FONT=Calibri]van Dijk, F., & van Winden, F. (1997). Dynamics of social ties and local public good provision. [I]Journal of Public Economics 64[/I] , 323-341.[/FONT][/SIZE][/B]
[FONT=Times New Roman] Communities or clubs tend to be formed by people with shared values, interests, and economic ties. This article, through the extensive usage of regression analysis, draws correlations between social ties, expenditures on public goods, and the corresponding increases in social welfare. The conclusions that when groups have strong social or ethnic links, the expenditure on club goods is increased and even oftentimes voluntary are remarkable. While to be sure, this does not present an argument for the dissolution of the state, it does present evidence that smaller communities are more efficient from a social welfare perspective, and that homogonous communities formed of individuals with shared values are more cohesive. [/FONT]
What this means is that communities where race and or ethnic make up is homogenous, taxes are lower due to the alturism effect.